If you have decided to open a trading account to commence your investing journey. Well done! You have the first BIGGEST step in trading.
You can open new accounts through mobile apps or websites of any online broker nowadays.
However, you have to keep a few things in mind before you open an account. Here is a list to take into consideration:
What type of Brokerage account you are in need of.
The features and associated costs must be considered.
Choosing the Brokerage which fits your needs is vital
Commencing the Application Process.
Funding your account and begin investing.
Choose the Type of Brokerage Account You Need
It is important to look at your style of investing when you are choosing a broker. It depends on whether you want to be on top of the market or if you are a set it and forget it type. This is a fundamental aspect that you should look into.
Similarly, you should look at the type of assets that interest you and lets you trade smoothly and comfortably. Or else, you must be willing to learn. This is necessary if you are planning to stay engaged in the market for a while.
Many investors hold stock, exchange-traded funds (ETFs), and/or mutual funds. If you’re looking at a few trading options, self-directed online brokers can help you choose an appropriate strategy. These brokers have a wide range of tools to guide you. However, since trading options have more risk stocks and ETFs, there are conservative strategies to generate an income. You can learn about these methods through the Investopedia’s Options Basics tutorial.
Many brokers have fixed income securities online and they let you invest in those. Apart from that, bond screeners and other tools that are available can help you build a portfolio.
It is better to get opinions from financial advisors or a Robo advisory service to see options with investing money but not time in building wealth. These Robo-advisors make a survey of your time, the amount of risk tolerable and the amount you plan to invest. If investing for retirement is what you are looking for where it focuses on the future, the risk that you would want to take for an asset will be more than investments made for shorter spans like three years.
Another important decision is whether you plan to open a regular taxable account, or an individual retirement account (IRA). Furthermore, the ownership of the account is another major decision. For example, you must state if you are opening an account for yourself or if there are other owners as well. This means a spouse or a child should also be able to login. On the other hand, if you could also open a custodial account for a minor for future use , like a college education. There is also a 529 Savings Account known as a tax-advantaged tuition account
You can visit our Best Online Brokers Awards center to choose a broker from a wide range that is available. It has reviews with details of US based brokerages so you have a wide option. Depending on your preferences and requirements , there is a list of the best brokers such as Best Brokers for ETFs and Best brokers for IRAs.
Consider the Features You Want and Their Associated Costs

You must take into consideration about the standard commissions when placing a stock trade. However, apart from the cost, there are other aspects to consider as well. Keep in mind that ‘free trades’ because if you don’t pay, you don’t get anything either. These are paid by routing to market makers where the broker is paid for the order flow. For investors who have small accounts with few shares, these zero-free brokers are a good option.
Find a broker who will guide you and help you improve through the investing process. The best brokers group has more recognition due to many aspects like navigation, clear commision schemes, tools to create portfolios and educational resources.

Choose the Brokerage That Best Fits what you seek and desire
Use the Chat function to clear your queries and they even provide support lines for new customers. You can use these to see how reliable and quality their support services are. Don’t forget to go through the FAQs on these sites as well.
If you have cleared your doubts and have decided, click the “Open an Account,” and begin the process.
Begin the Application Process
Although you have chosen your broker, you have to open an account as usual.
You will need to provide the basic information during this process such as your personal information, the other holders and employment history. Similarly, if you are not a citizen, information regarding visa as well must be provided.
This is important because brokers have a set of rules where they must collect information of the client. This is known as “Know your Client,” so that it prevents from money laundering,identity theft or funding terrorism. These questions might be intrusive but it is done in that way so that the brokers know that you invest in assets that you are aware of. However, the information given to you is limited.
There are other questions that they might ask such as the willingness to take financial risks, annual income, tax status and how long the investments will be for. However, you don’t have to be very accurate with this information as they are not verified. You can alter these responses later if there are any changes.
If filling this information online is not very appealing to you, you can download the paper application, print it and fill it. Then, you must mail it but it will cause delays. You also have the option of going to the physical locations and opening an account by person. You can choose anyway you want but the online method is well secured and the fastest mode of opening an account.

Most brokers tend to collect the same type of information using different formats and designs. However, this process will not take longer than 15 minutes.
Fund your account and begin investing
You must create online credentials like a user ID and password to login after you open an account.
You need to have an initial amount of cash that you must put into your account to begin trading. Although there are many options,the best and most convenient way would be to link your bank accounts to the brokerage account using the 9 digit routing and 10 digit account number. Using checks cause delays and linking in this way makes it easier to transfer money. Furthermore,as per the regulations of US brokers, you can’t fund your brokerage accounts with credit cards.
These brokers also provide a facility to set monthly transfers of cash on a regular basis. This is very beneficial if you are transferring money to a retirement or a saving account. After all, using technology to make regular deposits is a good habit.
A gap of one to seven days is there between opening an account and commencing trade which is usually dependant upon how you deposit money. You can use this time to watch videos, organize homepage and even get use to the site and the apps.
Also, keep in mind that nowadays, brokers charge a small amount of $1 to $2 to send paper statements. However, if you use an electronic notification system, you can avoid this extra fee. Just go to your profile and choose the type of email or snail mail you would want to receive, either from the broker or a partner.